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Consumer-Led Servicing: The Path to Smart Default Management Solutions

Connecting with homeowners digitally, on their own terms, takes the pressure off of mortgage servicers and gives homeowners a better sense of security.

Power to the People

Many of us can remember when the handshake between consumer and salesperson was the only KPI anyone ever needed. But, times have changed, along with people’s values. Consumers have put their trust in technology and value the convenience factor it provides.

People now choose online deposits instead of going to a bank branch, chatbots instead of customer support via phone, and online investment platforms over visiting a wealth manager. These small time-savers add valuable minutes to peoples’ busy days while providing the same quality of service as an in-person interaction.

We All Want to Feel In “In the Loop”

Outside of the convenience factor, the information age has brought a level of control to our lives that legacy phone, postal mail, and brick & mortar services simply can’t deliver. Thanks to technology, information can flow more freely between businesses and consumers. Data is more accessible and is highly valued by organizations to provide the absolute best products and services.

Since data and consumer engagement are so valuable, consumers now have a powerful voice that they didn’t have back in the “handshake era.” Understanding this, people feel more engaged and are more likely to provide reviews, rate products, and contact service providers who offer means of digital communication. Consumers are now feeling “in the loop” with the businesses they support, and because of this, they are happy to self-serve themselves—taking some pressure off service teams.

Unfortunately, mortgage servicers haven’t had the luxury of providing a consumer-led digital experience to homeowners because no one has wanted to tackle the industry’s technical complexities—until now. The Brace Default Management platform is the first step in an end-to-end digital solution for mortgage servicers and homeowners.

Consumer Control = Stress-Free Servicing

All Servicers are familiar with RESPA. While the guidelines have the best interests of homeowners in mind, it’s a leading source of stress for Servicers working with legacy systems. Brace’s automated correspondence and first-of-its-kind Rules Engine react immediately to data input by the consumer, updating potential workout options and RESPA compliance timelines. These automations mean less “hand-holding” between servicing managers and their workforce and servicing teams and homeowners.

Stress is also relieved for homeowners when they experience financial hardship. The last line of defense against people foreclosing on their homes is their mortgage servicer. Unfortunately, many homeowners aren’t aware of the loan modification options available to them. In fact, many feel that their servicers want to foreclose on their homes.

Read the full Brace 2022 U.S. Mortgage Servicing Survey results

A mortgage servicer who’s digitally connected to the homeowner can recapture many more loans before they enter into foreclosure. They can proactively engage consumers and better understand their financial situation while communicating the resolution options available more efficiently and effectively.

Security Through Connectivity

For Servicers and homeowners, security can mean different things. When thinking of security, homeowners tend to view keeping and maintaining their homes as the primary objective, not seeing them as a source of wealth. It’s especially true in times of hardship. Shelter still reigns supreme on an individual’s hierarchy of needs. On the other end of the spectrum, security to Servicers typically implies the need to secure their customers’ personal and financial data.

The Brace Default Management platform provides a Homeowner Engagement Portal that the homeowner reaches via a secure single sign-on from their servicer. This single-tenant cloud-based portal is white-labeled and fully customized to the Servicers’ brand and investor needs. Not only are consumers protected from outside threats, but there’s also a digital trail of every interaction between the Servicer and homeowner.

Accessibility to this type of data delivers peace of mind to Servicers, consumers, and investors that all parties are performing their due diligence. Like any consumer-led technology, the Brace platform also provides vital insights into homeowner needs and interaction behavior.

The connectivity doesn’t stop there. The Brace Default Management platform provides a convenient digital experience that guides the homeowner in providing a complete loss mitigation application, including providing all required supporting documentation. This real-time flow of data within the Brace platform also offers investors a daily snapshot of their portfolios for more accurate and transparent valuations.

When a customer enters/uploads information, the logic of the Brace Rules Engine progressively updates the file status, checking what the homeowner could be qualified for and prompting the homeowner to add or enter the applicable information. The final application, along with all supporting documentation (a Complicated IRS form such as the 4506C and variously formatted 3rd party authorization forms), is collated into a single document, making it easier and faster for Servicing teams to process the application. No more hunting for random scanned documents or waiting on a paper mail notification.

“Being able to do it digitally and online, not having all the paperwork going back and forth in the mail as made for a much better experience for the borrower, and we’re seeing modifications move through a lot quicker. As a result, we’ve engaged thousands of borrowers using the Brace modification solution that would not have been possible under the old process.” Lee Smith Executive VP of Mortgage, Flagstar Bank

The Digital Servicing Revolution is Here

Servicers and homeowners deserve better, and since we’re all homeowners (or aspiring to be), we should demand better. The “this is just how things are done” argument for mortgage servicing is no longer valid because there is a better way. Smart integrations with best-in-class technology providers help the homeowner provide the correct and most accurate information for Servicers to deliver fast resolutions. The Brace Default Management platform comes equipped with:

  • Disaster impacted properties are identified directly from FEMA geolocation data
  • Digital asset reporting direct from their bank and PEO
  • Secure eSignature

The Brace Default Resolution platform is the cornerstone of what will be an end-to-end digital mortgage servicing solution. Contact us to learn more about how your organization can upgrade to a connected, consumer-led experience.